MINNEAPOLIS — As word began to spread this week about a cyberattack impacting mortgage giant Mr. Cooper, many customers didn't immediately realize that they were impacted until they tried to log on to pay their mortgage.
Others, who have had their payments scheduled to come out automatically, still might not realize the issue. Others, might not even know that Mr. Cooper is the servicer of their mortgage.
"When you're paying off your mortgage, in most cases, that loan is going to be bought or sold to a servicer. IE, Mr. Cooper," said Zach Kwakenat, vice president of mortgage lending, for Guaranteed Rate Affinity. "Mr. Cooper is the largest servicer of mortgage loans across the country, actually."
The company released an update on the incident on Thursday:
Mr. Cooper Group determined on October 31, 2023 that the company experienced a cybersecurity incident in which an unauthorized third party gained access to certain technology systems. Following detection of the incident, we initiated response protocols, including deploying containment measures to protect systems and data and shut down certain systems as a precautionary measure. We value our customers and take their data privacy very seriously, and we have launched an investigation with assistance from leading cybersecurity experts and notified law enforcement.
At this time, we believe this cybersecurity incident was isolated to Mr. Cooper systems and technology and did not affect any of the company’s clients’ or partners’ systems or technology.
Mr. Cooper customers and customers whose loans we service on behalf of our clients who have tried or need to make payments will not incur fees, penalties or negative credit reporting as we work to resolve this issue. We are actively working to resolve the issue and restore our systems as soon as possible, and we are committed to providing regular updates at https://incident.mrcooperinfo.com/.
That information might be news to some customers because the link to that information (and frequently asked questions about the cyberattack) is blocked by some internet browsers, which deem that the connection to the site is not secure.
"I can tell you if consumers do have concerns or they don't know what to do, they can certainly call the Department of Commerce," said Jacqueline Olson, Assistant Commissioner of Enforcement for the Minnesota Commerce Department.
Though there isn't much action for customers to take in terms of paying their mortgage right now, she says it's a good time to be proactive and check their accounts for signs of identity theft.
"They could contact one of the credit bureaus and place a one-call fraud alert on their credit report," Olson said. "They only have to contact one of them to make that happen."
Here are some more FAQ's about the incident from the Mr. Cooper informational page:
Q: What happened?
A: On October 31, Mr. Cooper became the target of a cyber security incident and took immediate steps to lock down our systems in order to keep your data safe. Our systems remain locked down, and we are working on a resolution as quickly as possible.
Q: Was customer data breached as part of this incident? How will I know if my data was impacted?
A: We are actively investigating this event to determine if any data has been compromised. If customers are impacted, they will be notified and provided with identity protection services.
Q: What is Mr. Cooper doing to protect me?
A: We value our customers and take their data privacy very seriously. Following detection of the incident, we immediately initiated response protocols, including deploying containment measures to protect systems and customer data, as well as shut down certain systems as a precautionary measure.
Q: When will Mr. Cooper return to normal operations?
A: We understand how important it is that you be able to access our systems, and we are actively working to resolve the issue and restore our systems as soon as possible. Rest assured, you will not incur any fees, penalties or negative credit reporting related to late payments as we work to fix this issue.
Q: How do I make a payment while the system is down?
A: While the system is down, we are not able to process your payment. If you use ACH, your payment will be processed as soon as our systems are operational and you will receive a notification. You do not need to do anything. If you use any other method of payment, you will be able to do so as soon as we resolve this issue. Rest assured, you will not incur any fees, penalties or negative credit reporting related to late payments as we work to fix this issue.
Q: I’m a newly transferred customer. How will this impact me?
A: First, welcome to Mr. Cooper. We are happy to have you. The mortgage transfer process can be stressful at any time, and it’s our goal to make it as seamless as possible. This incident may impact when you are able to access your account information for the first time. We are grateful for your patience and will keep you updated with new information as it becomes available.
Q: Will my rate lock be honored?
A: Yes, your rate and fees will not be impacted by this incident.
Q: When will I close?
A: We understand how important it is that we close your loan on time. We are actively working to resolve the issue and restore our systems as soon as possible. As a reminder, if you are purchasing a home, we will honor our Close On Time Guarantee.
Q: I’m working on a refinance, do I need to worry about my loan terms changing
A: This incident will not cause any loan terms to change.
Q: How can I communicate with my Processor or Mortgage Professional?
A: Our secure text messaging platform is the best way to communicate with your loan team at this time.
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